Questions tagged [ipo]

For personal finance questions related to a company's Initial Public Offering (IPO).

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2answers
38 views

Are all investors subject to lock-up period during the IPO?

The company receives its full funding amount during the IPO, where it sells its shares to institutional investors. Let's say it sold 1 million shares. Then, when the shares start trading on the ...
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1answer
93 views

Why is money for SPAC raised even before they have found a potential company to merge with?

From what I have understood, A SPAC shell co. is setup and raises funds through an ipo thereby getting a period of 2 years to find a company they can merge with. Is there a specific reason that it ...
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0answers
28 views

How can charges against company surplus be used to reduce a goodwill account?

I am presently reading the second edition of Security Analysis by Benjamin Graham. In chapter 29, "The Dividend Factor in Common-Stock Analysis", to illustrate the relationship between ...
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1answer
81 views

How to find out the IPO lockup period?

Is there a way to find out the IPO lockup period of a recent public company? Could I find this information in the S1 document? If so, where exactly should I look for in the S1 document?
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2answers
133 views

To the employer, is equity more or less expensive than payroll?

I work for a company that compensates employees with low base salary and a bit higher than average equity. My question is, how much more expensive is paying an employee equity vs standard salary? How ...
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2answers
49 views

Why must an investment bank underwrite an IPO, not a company's finance department led by the CFO?

Isn't it merely an interaction with a bureaucracy like say.. renewing your passport or getting an apostille on a document? Sure, you can go through a third-party, but you can also do them yourself (...
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2answers
71 views

Could I buy shares of upcoming NASDAQ IPOs at their offer price? For example: The upcoming Roblox IPO in 2021. If so, how?

This is intended for me: a regular 30 yr old guy who works 9-5, and has a middle class income. Please describe well. I am nearly a complete noob. I know a little though. Also I am from Canada.
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1answer
62 views

What are the different kinds of IPOs?

I recently tried to witness an Initial Public Offering on a trading platform. What struck me is that it seemed to be different according to who the investors were. Indeed, at the time some newspaper ...
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7answers
4k views

Why would a company prevent their employees from selling their pre-IPO equity?

I have heard and read that some non-publicly traded companies prevent their employees from selling their pre-IPO equity. Why would they have such a policy? For example, from How to Sell Private ...
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1answer
32 views

Is there a Central Place where IPOs are announced [closed]

I wish to buy several companies when they have initial public offering (IPO). Instead of doing google, where is a central website that announces IPOs of companies?
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1answer
228 views

Is this absurd stat a very unique (w.r.t the point in time in which it was calculated)? If not, are there people who do it?

Reading The Intelligent Investor I came across the following fact which was mind-blowing to me: Finance professors Jay Ritter and William Schwert have shown that if you had spread a total of only $1,...
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2answers
194 views

Why did Berkshire Hathaway have an IPO starting at $7000+? [closed]

Or in other words how is IPO value determined?
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35 views

When company issues new share to the public at IPO, is its issued/offered price based on Book value per share?

Since it goes public for the first time, there's no market price available to be considered for offers.
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2answers
279 views

How does company issue more shares after IPO? Does it issue new shares at the market value or book value per share?

1.Take Facebook as an example, it debuted with 421 million shares at IPO and now it has 2.8 billion shares. It hasn't made any stock split since IPO so does its number of shares outstanding increase ...
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1answer
70 views

The optimal strategy for buying stocks at the IPO

When the company makes the initial public offering (IPO) the prices of stocks in the first days are usually more volatile in average, than for the established business. In the book The Intelligent ...
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3answers
164 views

Can I raise money in an IPO of my house?

I am thinking of getting some cash by selling shares of my house. Can I sell shares of my house in an IPO to raise some cash for myself? It would be super cool to ring the opening bell during the IPO ...
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0answers
27 views

What are the differences between IPO and Direct Listing, esp for employees?

If a pre-IPO company is evaluating whether they should go IPO or Direct Listing, how would either option affect employees? Let's say the employees have some combination of NSO, ISO, RSU. IPO may be a ...
3
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1answer
239 views

Why can't I buy stocks during the beginning of an IPO at 9:30am? [duplicate]

I just noticed that I could not buy stocks of an IPO during the beginning to the trade at 9:30am. I tried NYSE:AMWL this morning. I can only buy the stock of an IPO several hours later. Does anyone ...
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0answers
29 views

Time Required for S-1 Filing to Become Effective

How long does it normally take for an S-1 filing to become effective? Is it a standard turn around, i.e. 30 days? Or, does the SEC consider differing factors for each filing which varies the amount of ...
0
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2answers
125 views

How does stock exchange affect the company? [duplicate]

People invest in the company initially using an IPO. Now I don't understand how trading the stocks with others (who didn't participate in the IPO) would benefit the company. Also, why do the people ...
3
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1answer
158 views

What is a confidential IPO and how do you participate in it?

What is a confidential IPO and is general public allowed to participate in it? Lately there have been a lot of confidential IPOs. A recent example being the Duck Creek Technologies IPO. I try to ...
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7answers
4k views

Does an IPO mean a company is going public or is already public?

I know that an IPO means that a particular company, regardless of the country, is offering some quantity of their stocks to the public via the stock exchange. I also assume (but not sure) that if they ...
2
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1answer
104 views

Where can the founder of a company sell his stocks?

Let's assume that we have a tech company that wants to go public. In its IPO, the founder of the company wants to get $10 millions for 10% percent of the company. Those $10 millions will be ...
1
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1answer
317 views

How does a company earn money from going IPO and being on the stock exchange? [duplicate]

Please clarify if I understand the process of a company going IPO and selling shares on the stock market. A company goes IPO, and starts of with selling 1 million shares on an exchange. Sets the ...
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2answers
95 views

IPO Lock up trade

I have a question regarding how to benefit from major price movements after the end of a lock-up period post IPO. I have seen that in many cases there are no extraordinary movements in the prices in ...
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1answer
45 views

ARAMCO's financial statements [closed]

Can anybody explain me how come that ARAMCOS financial reports are available to the public while its not publicly traded company. Thank you!
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3answers
5k views

How do companies get money from being listed publicly? [duplicate]

How do companies get their money from being on the stock market? I understand the reason a company will list is to raise capital. Who gives them this money? The stock market is between buyers and ...
2
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0answers
130 views

How can a single unit of a business be worth more than its entire market cap?

As of today, June 26th 2019, Thyssenkrupp AG has a market cap of approximately 7.3 billion euros. On May 10th 2019, Thyssenkrupp AG announced that it will take its elevator business public in an IPO. ...
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1answer
49 views

Are shares from a direct listing available as soon as markets open?

I’ve noticed in conventional IPOs that some companies’ trading data doesn’t start showing up until the early afternoon on the day they go public. Looking back at Zoom (ZM) for example I’m now able to ...
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0answers
36 views

Are IPO lockup shares counted when calculating eps?

For example, Company XYZ has an IPO on January 1st They offer 10 million shares 90 million shares are still held by insiders The lockup lasts until June 1st They report earnings of $100m for Q1 on ...
0
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1answer
65 views

SEC institutional pre-IPO disclosure

All funds/managers with assets above 100M need to file their holdings with the SEC in the form of a 13F. like this one for example : https://sec.report/Document/0001567619-19-011051 There is a column ...
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1answer
168 views

Buy pre ipo'd start up company stock in small amount? [closed]

Is there any investment website/company through which I can buy small amounts of pre-PIOed company stock in a smaller amount? Most require $100K worth of investment. e.g. as an average investor can ...
3
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2answers
977 views

Can an IPO be cancelled if not successful?

Let's say the Company C goes public using a Fixed Price Offering. It emits 10000 shares at 10 euros per share. What happens if investors only subscribe to, let's say, 789 shares. That gives a ...
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1answer
126 views

How can I establish myself to be an “accredited investor” relative to an IPO?

A US company with which I have an affiliation (I'm not an employee; I don't think the specifics of our relationship are relevant here) is preparing an IPO and there is a directed share program for a ...
2
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1answer
906 views

What happens on the NYSE during an IPO such that the first trade may be hours after the opening bell?

So, I understand that today's Spotify IPO isn't a traditional IPO. But I think my question extends beyond this. At about 12:45pm today, shares of Spotify finally started trading on NYSE. Opening bell ...
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1answer
1k views

If I earn RSUs in a private company while living in California, and am no longer employed with the company at IPO, do I owe California taxes?

I'm employed at a private company in San Francisco. Part of my compensation is in RSUs, which are subject to the standard two vesting conditions for startup company stock: time, and the occurrence of ...
5
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1answer
204 views

How to buy an IPO?

how does one buy an IPO? Are these only for institutional investors? For example Dropbox IPO'd at $21, yet I don't think I had the opportunity to purchase at this rate. I can buy on the stock exchange ...
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0answers
53 views

What percent of first post-IPO earnings reports are disappointing?

It seems like every time a company has its IPO, the next earnings report fails to meet expectations and the stock price plummets. Shouldn't expectations be lower considering the frequency at which ...
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2answers
119 views

Precedent and models for 100% equity available via initial offering?

In consideration of the most ethical distribution of shares for a startup business (via a public, initial investment event ie- IPO, ICO, or 'crowd-equity-fundraiser') the following occurred to me. ...
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1answer
76 views

What is the meaning of public stock price data from before the official first day of trading? [duplicate]

I have noticed that some companies, in the weeks prior to a first listing day or IPO, have share prices listed. This often seems to happen before a spinoff, such as in Xylem's (XYL) 2011 spinoff from ...
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1answer
465 views

Why do some services list an IPO date that is well after historical price data you can find elsewhere?

The IPO date I find for the MMM Corporation is 1/13/1978 (http://www.crunchbase.com/ipo/3m-ipo--e0c82f24). Google Finance has price data going back to that date (http://finance.google.com/finance?q=...
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1answer
2k views

Is Volvo a public company?

I am wondering whether Volvo is a public company. Seemingly Volvo is traded (and has been for years): https://finance.yahoo.com/quote/VOLV-B.ST?ltr=1 But a lot of articles are talking about a ...
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1answer
1k views

What Happens to Cofounders' Shares when they IPO?

When a company starts off, 100% of shares are owned by cofounders. By the time a company is considering IPO, the shares are owned like 70% by cofounders and 30% by options-holders (like employees) (I ...
3
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1answer
176 views

What does it mean for issuing corporations to “crank out expensive shares when markets are frothy … and issue debt when markets are cheap”?

Can someone explain this excerpt from William Bernstein's article "The $100 Billion Oxymoron": But don't feel too sorry for issuing corporations, they are past-masters at cranking out expensive ...
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1answer
590 views

Share price increase around the end of the “quiet period” vs. the “IPO lock up period”?

As explained here, the IPO lock up period is ...a period of time after a company has initially gone public, usually between 90 to 180 days. During these initial days of trading, company ...
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1answer
943 views

How does a public company turn shares into cash?

Once a company starts trading publicly, how do they turn shares into cash that they can then use to grow their business? From what I've read so far, it seems that pre-IPO an investment bank ...
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1answer
1k views

what's the difference between money raised in an ipo and its valuation?

I see news that says "company X wants to raise 3 million dollars at a valuation of 25 million dollars". How does the company get this 3 million? And is the valuation determined in part by how much ...
0
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1answer
181 views

Selling shares after company does IPO

Let's say a co-founder who worked (but no longer does) for a company prior to it going public still owns 1% (100,000 shares of 10,000,000 total) of the company. If the company does an IPO and offers ...
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1answer
159 views

Why public companies care how their stock price fluctuates? [duplicate]

After IPO, the socks are traded between 3rd parties (let's assume the company's employees don't own shares), so why should the company care what's their (perceived) value on the market? After the IPO, ...
1
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1answer
580 views

How is initial stock price (IPO) of a stock determined

Stock price = Company value / Amount of stocks Who determines company value at IPO? As I understand It is determined by the owner? Or external experts?